4 Kinds of Insurance Every Contractor Needs

​Contractors are aware of the dangers of their job and the responsibility to ensure the safety of their employees. Contractors' insurance looks after your business financially in case of accidents or natural disasters, in exchange for regular payments of premiums. Read further to learn more about the types of insurance to get and what a standard contractors' insurance covers. 

Categories of Contractors' Insurance
Insurance policies for contractors fall under the umbrella of these 2 classes:

• Liability Insurance - Insurance is about providing a safety net for unexpected losses, and every business needs to be prepared for workplace accidents. Construction sites are notorious for being the most dangerous workplaces, which makes them highly prone to safety risks. Any physical harm that falls on any person during the job can be cause for lawsuits filed against your business. The same goes for property damage. Liability insurance can handle the payments for you, as well as other settlements in these instances. 
• Property Insurance - Construction work involves the heavy use of various equipment, from small tools to heavy machinery. These items are a contractor's significant investments, and they deserve to be insured from things like fires, theft, or windstorms. Property insurance covers you during disasters like these, and can even reimburse the value of your damaged property depending on your policy.

Most Common Types of Contractors' Insurance

• Commercial General Liability Insurance - A general liability insurance pays for damages and medical expenses for employees or anyone else on your construction site physically harmed on the job. If necessary, insurance will even compensate for lost wages. 
• Workers' Compensation Insurance - Like all businesses, contractors are required by their state to secure workers' compensation insurance for the sake of their employees. Construction site workers are in constant risk of sustaining injuries from falling debris, equipment malfunction, among other things. In exchange for coverage of medical bills and wage replacement, injured employees agree not to submit legal complaints against their employer.
• Contractor Errors & Omissions Insurance - This type of policy provides coverage for repair costs on any work your business does that may have resulted in unintentional defects. 

The Importance of Contractors' Insurance
Potential clients want to be guaranteed security, which is why they prefer hiring contractors with liability insurance. Clients seek professionals equipped with updated licenses and appreciate those who have thorough insurance coverage well. This tactic minimizes the client's risk of paying extra costs in damages along the way and can even put you in an excellent position to win a higher bid for a project. Note that all people working on a project should ideally have insurance, including subcontractors that you hire to do specific work.

Safety and security are big priorities of every construction job, and insurance is a great way to guarantee both. Whether you're a one-man operation or managing a large group of employees, you know that ensuring safe working conditions is not enough to look after your business. Insurance is there to aid you financially in case of unexpected slips and damage, ensuring that you and your employees' wellbeing are taken care of.

At Black And Associates Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (509) 464-0058 or Click Here to request a free quote.